02-14-2012 ERMUMINELK RIVER MUNICIPAL UTILITIES
REGULAR MEETING OF THE
UTILITIES COMMISSION
HELD AT UTILITIES CONFERENCE ROOM
February 14,2012
Members Present: John Dietz, Chair; Daryl Thompson, Vice Chair; Al Nadeau, Trustee
ERMU Staff Present: Troy Adams, Utilities Director;
Theresa Slominski, Finance Director /Office Manager;
Mark Fuchs, Line Superintendent; David Berg, Water Superintendent;
Wade Lovelette, Technical Services Superintendent;
Tom Sagstetter, Conservation & Key Accounts Manager;
Judy McSpadden, Recording Clerk
Others Present: Cal Portner, City Administrator;
Rebecca Haug, Environmental Administrator;
Peter Beck, Attorney from Gray Plant Mooty Law Firm
1.1 Call meeting to order February 14, 2012
John Dietz called the February 14, 2012 meeting to order at 3:30 p.m.
2.1 Consider Utilities Agenda
John Dietz added a couple items under Other Business. Troy Adams added 4.3 Jackson Street
Water Tower Update and Utilities Commissioner reappointment update under Other Business.
Al Nadeau moved to approve the February 14, 2012 Utilities Agenda with changes. Daryl
Thompson seconded the motion. Motion carried 3 -0.
CONSENT AGENDA (Approved By One Motion)
John Dietz had questions on the financials, staff responded.
Daryl Thompson moved to approve the Consent Agenda as follows:
3.1 January Check Register
3.2 January 10, 2012 Regular Meeting Minutes
3.3 Financial Reports
3.4 2012 Regular Utilities Commission Meeting Schedule
Al Nadeau seconded the motion. Motion carried 3-0.
Page 2
Regular meeting of the Elk River Municipal Utilities Commission
February 14, 2012
OPEN MIC
No one appeared for open mic.
Troy Adams requested 4.3 Jackson Street Water Tower Update be moved up.
4.3 Jackson Street Water Tower Update
Rebecca Haug, Environmental Administrator for the City of Elk River, gave an update on the
progress of getting the Jackson Street water tower placed on the National Register. Legacy funds are
available for restoration if the tower is placed on the National Register. Discussion followed.
4.1 Update on Power Supply Options / Resource Planning
In September 2008, Connexus Energy terminated the 10 -year rolling "all requirements" power
contract with Elk River Municipal Utilities (ERMU). ERMU Commission authorized entering into
"Phase 1 " of a resource planning study in April of 2010, with a coalition which includes Central
Minnesota Municipal Power Agency (CMMPA) as a participant. In September 2010, ERMU
Commission authorized entering into "Phase 2" of a resource planning study which includes the
release of a Request For Proposal (RFP). The RFP was issued on November 15, 2010. In May 2011,
the ERMU Commission authorized entering into "Phase 2b" of the resource planning study which
will include risk assessment of the proposals. In addition to working with the Resource Planning
Coalition, staff continues to explore other power supply options.
Troy Adams updated the Commissioners on the discussions and information acquired in the last
month.
4.2 Update on Water Conservation Program
At the January 10, 2012 ERMU Commission meeting, staff was directed to modify the Water
Conservation Program to apply only to commercial irrigation customers. This program will establish
incentives for implementing water conservation measures for commercial irrigation customers in
2012. Commercial customers will be eligible for an exemption from the 3d step rate provided they
enroll and annually participate in the Commercial Irrigation Water Conservation Program.
Tom Sagstetter reviewed the revised Commercial Irrigation Water Conservation Rebate
Application form. John Dietz requested the application form to be included with the minutes.
AI Nadeau moved to approve the Water Conservation Program. Daryl Thompson seconded the
motion. Motion carried 3-0.
Page 3
Regular meeting of the Elk River Municipal Utilities Commission
February 14, 2012
5.1 Review 2011 Annual Safety Resort
Minnesota Rules Chapter 7826 of the Public Utilities Commission Electric Utility Standards
covers safety, reliability, service, and reporting requirements. Per 7826.0100(A), municipal utilities
are exempt from these requirements. However, the ERMU Utilities Commission adopted parts of this
chapter as a Distribution Reliability Standard policy, which includes an Annual Safety Report
requirement. The policy requires ERMU to "file an annual safety performance report with its local
governing body. The report will include summaries of all reports filed with OSHA and the
Occupational Safety and Health Division of the Minnesota Department of Labor and Industry during
the calendar year."
Troy Adams reviewed the report and comparisons from the previous year. There were no
missed days of work due to an injury in 2011. Commissioners thought it was a great report.
5.2 Review 2011 Annual Electric Reliability Report
Minnesota Rules Chapter 7826 of the Public Utilities Commission Electric Utility Standards
covers safety, reliability, service, and reporting requirements. Per 7826.0100(A), municipal utilities
are exempt from these requirements. However, the ERMU Utilities Commission adopted a number of
parts of this chapter as a Distribution Reliability Standard policy, requiring annual reporting on system
reliability.
Even with the weather issues in 2011, the Reliability index numbers for ERMU are excellent.
The Average Service Availability Index (ASAI) for 2011 was 99.994% availability. Discussion
followed. John Dietz said some of these numbers should be included in the annual report to the City
Council. Consensus was this was an excellent report and to keep up the good work.
5.3 Review Deposit Policy Revision
At the January 10, 2012 ERMU Commission meeting, there was some discussion during the
fourth quarter write -offs that prompted a further look into the deposit amounts required for
apartments.
When the policy was first written, the deposit amount was to be two times the average month's
usage. Rather than calculate that amount for every customer, averages were determined that could be
applied across the board to all residential customers classes. The new deposit recommendation is
$100 for apartments, $100 for water and sewer services, $150 for all - electric heat services, and $250
for all three services (electric, water, and sewer). The amount required to be deposited for commercial
services shall be equal to two times ERMU's estimate of the customer's highest monthly bill.
Discussion followed. Troy Adams said staff recommended there should be a minimum amount for
the commercial accounts. Consensus was to have a minimum of $250 for commercial accounts.
Additional discussion brought up the Revenue Recapture program implemented in 2011. Theresa
Slominski updated the Commission the amount ERMU has been able to collect since October 2011
was $4017.
Page 4
Regular meeting of the Elk River Municipal Utilities Commission
February 14, 2012
Daryl Thompson moved to approve the Customer Deposit Policy with the change on the
commercial deposit. Al Nadeau seconded the motion. Motion carried 3 -0.
5.4 Review Pay Equity Report
Local Government Pay Equity Act, M.S. 471.991 - 471.999 and Minnesota Rules, Chapter 3920
requires local jurisdictions to submit a pay equity report to the State of Minnesota every three years.
The basis of the reporting requirement is to ensure that male and female employees are fairly
compensated for comparable work. To determine this pay equity, jobs are assigned a point value that
is compared to the gender and wage of the employee(s) and a statistical analysis is performed. 2009
was the last time ERMU filed and at that time was in compliance. Now the statistical tests show
ERMU out of compliance.
Theresa Slominski reviewed the Pay Equity Compliance Report. Discussion followed.
AI Nadeau moved to approve the pay equity report filling for 2012, and send the compliance
issue to the Wage and Benefits Committee to bring back to the Commission with a
recommendation. Daryl Thompson seconded the motion. Motion carried 3 -0.
6.1 Staff Updates
Troy Adams displayed designs of signs for the power plant buildings along with quotes.
Discussion followed.
Daryl Thompson moved to purchase the signs from the lowest bidder. Al Nadeau seconded the
motion. Motion carried 3 -0.
Troy Adams updated the Commissioners on the Legislative Rally he recently attended. Topics
included net metering, redundant reporting to government agencies, and wastewater treatment
upgrades.
David Berg reviewed maps of the wells in the Elk River area. Discussion followed regarding
the amount of customers that have not hooked up to the water system and the vulnerability of unsealed
wells. Discussion followed.
John Dietz asked Wade Lovelette what the locators have been doing during this slow time.
Wade Lovelette responded they have been doing mapping and infrared imaging to locate hot spots on
the electric system that need attention.
John Dietz and Troy Adams informed the Commission of a $25,000 savings for the City's
budget. They were going to purchase a lift truck, but instead will be utilizing ERMU's bucket trucks
when needed.
Al Nadeau gave an update on the status of the washer and dryer at the plant_
Page 5
Regular meeting of the Elk River Municipal Utilities Commission
February 14,2012
John Dietz said Daryl Thompson was reappointed as an ERMU Commissioner for another three
years. John Dietz also read an e -mail commendation from Annie DeckeM the Director of Economic
Development for the City of Elk River, regarding Troy Adams.
John Dietz asked ERMU commissioners if they would be interested in sponsoring a holiday
lighting contest. This would be a good way to promote LED lights through the CIP program. Al
Nadeau said he was for it, that it would be a good community thing, and people love to go out and
look at lights. John Dietz said he has received a positive response from others in the community.
Discussion followed regarding cost, awards, and implementation of this contest. Consensus was to
move forward with the planning and bring back next month with recommendations for this contest.
6.2 Set Date for Next Meeting
Due to a schedule conflict, the next regularly scheduled meeting of the Elk River Municipal
Utilities Commission will be Tuesday, March 20, 2012, at 3:30 p.m.
6.3 Adiourn Regular Meeting
Daryl Thompson moved to adjourn the regular meeting of the Elk River Municipal
Utilities Commission at 4:45 p.m. AI Nadeau seconded the motion. Motion carried 3 -0.
Minutes prepared by Judy McSpadden.
JJ. ietz
Chair, ERMU Commission
Tina Al lard
City Clerk
COMMERCIAL IRRIGATION WATER
Elk River CONSERVATION REBATE APPLICATION
Municipal Utilities If you have questions, please call 763 - 441 -2020, 8:00 AM to 4:30 PM Mon — Fri.
Program Requirements: I) Commercial irrigation customers that have a winter con-
sumption of zero units the previous year, 2) Copy of Invoice or sales receipt for all equipment,
3) Maximum water credit for Smart Controllers is 50% of installed cost up to $50o dollars for
customers using greater than 250 units, $250 for customers using less than 250 units, 4) Maxi-
mum water credit for sprinkler heads or drip systems is 50% up to a maximum of $500 per
year, 5) All water credit rebates are contingent on ERMU verification and approval, 6) custom-
er must attain 10 water conservation points (WCP) to participate in the program.
ACCOUNT INFORMATION:
NAME ON WATER ACCOUNT:
ACCOUNT #:
ACCOUNT HOLDER PHONE #:
APPLICANT INFORMATION:
Name of person applying: E -mail:
Day Phone: Cell Phone:
Billing Address: City: State:
Installation Address: Citv: MN Z
IRRIGATION INFORMATION:
Property Type (circle one): Association /Multi - family
Irrigation System Installation
Installation Person /Company:
Smart Controller (5 Water Conservation Points)
Smart Controller Installation
Smart Controller Brand:
Commercial
Number of Zones:
(Copy of invoice with application required)
Model
Sprinkler Heads or Drip System (1 Water Conservation Point for each head or drip line)
Type of Sprinkler Heads (circle one): Pop -Up Impact Rotors Drip line
Installation Date: (Copy of invoice with application required)
Irrigation System Brand:
Model
Irrigation System Assessment: (3 Water Conservation Points)
Name of Company Performing Assessment:
Technician Name:
Please provide an itemized copy of the original invoice with this form.
Assessment must include: Check all data sensors to ensure they are operational, program controller, inspect for leaks in
heads and distribution pipes, check for proper alignment of sprinkler heads.
Landscaping: (8 Water Conservation Points)
Type of landscaping changes (circle all that apply): Eco -Grass
Please Describe "Other":
Square Footage of Area:
Installation
Black Dirt
Native /Prairie Grass Rain Garden
Rock Garden Xeriscape Other
(area must be larger than 500 square feet to qualify)
Phone:
Please provide an itemized copy of the original invoice and a simple sketch of work done with this form.
(OFFICE USE ONLY)
REBATE VERIFICATION:
Inspection Date:
pts Smart Controller
pts Landscaping
Time:
pts Water Conserving Indoor Equipment
TOTAL POINTS
1T IBCIl
Inspector:
pts Sprinkler Heads
pts Irrigation System Assessment
pts Participate in Project Conserve
Elk River Municipal Utilities, C/O WATER CONSERVATION REBATE, P.O. Box 43o, Elk River, MN 55330